Apache Reports First-Quarter Results, $4 Billion Asset Sales Goal, Program To Repurchase Up To 30 Million Shares

Apache Reports First-Quarter Results, $4 Billion Asset Sales Goal, Program To
                      Repurchase Up To 30 Million Shares

First-quarter production growth driven by 45% increase in North American
onshore liquids

PR Newswire

HOUSTON, May 9, 2013

HOUSTON, May 9, 2013 /PRNewswire/ --Apache Corporation (NYSE, Nasdaq: APA)
reported first-quarter earnings of $698 million, or $1.76 per diluted common
share, and adjusted earnings*, which exclude certain items that impact the
comparability of operating results, of $806 million or $2.02 per share. During
the first quarter, worldwide production increased to 781,819 barrels of oil
equivalent (boe) per day driven by a 45 percent increase in North American
onshore liquid hydrocarbons output compared with the year-earlier period;
earnings declined as a result of lower commodity prices. Cash from operations
before changes in operating assets and liabilities* totaled $2.4 billion.

Apache also announced a plan to divest $4 billion in assets by year-end 2013.
The company intends to use initial proceeds of $2 billion to reduce debt and
enhance financial flexibility. Additional proceeds are intended to be used to
repurchase approximately $2 billion of Apache common shares under a
30-million-share repurchase program authorized by the Board of Directors.

G. Steven Farris, Apache's chairman and chief executive officer, said, "We
are showing strong results from the strategic shift that we outlined in 2012,
with production from onshore North American liquids plays of 165,000 barrels
per day in the first quarter. We expect our onshore drilling programs will
continue to contribute significantly to meeting our production targets."

Farris added, "This rationalization of our asset base flows naturally from
more than $16 billion of acquisitions over the last three years. Our goal is
to ensure that Apache's portfolio has the right mix of assets to generate
attractive rates of return, drive production growth, and create shareholder
value.

"In this vein, our Board and management team conducted a strategic portfolio
review to identify assets that no longer fit our growth profile," Farris
said. "Based on this review, we have a process well under way to divest
non-core assets while retaining those that drive long-term growth and generate
cash from operations. We are also pursuing other monetizations including joint
venture partnerships.

"Proceeds from this program will enable us to reduce debt and repurchase up to
30 million shares or approximately 7.5 percent of shares outstanding," Farris
said. "We believe that as a result of this process, we will become an even
stronger company with a focused portfolio of high-growth, high-return assets."

Agreements pertaining to asset sales and monetizations are subject to market
conditions including commodity prices. Apache's annual production guidance
will not be adjusted until it enters into definitive agreements with potential
acquirers or joint venture partners.

The timing and actual number of shares repurchased will depend on a variety of
factors including the stock price, corporate and regulatory requirements and
other market and economic conditions. Repurchased shares would be available
for general corporate purposes.

First-quarter results

In the prior-year period, Apache reported earnings of $778 million or $2.00
per share, adjusted earnings of $1.2 billion or $3.00 per share, and cash from
operations before changes in operating assets and liabilities of $2.6
billion.

First-quarter 2013 worldwide production of 781,819 boe per day compared with
769,296 boe per day in the prior-year period and 800,005 boe per day in the
fourth quarter of 2012. As previously disclosed, first-quarter 2013 worldwide
production was negatively impacted by interruptions associated with cyclones
in Australia and third-party gas plant downtime in Canada.

Apache currently is the second most-active U.S. onshore driller with 42 rigs
in operation in the Permian Basin and 28 rigs active in the Anadarko Basin.
The Permian and Central regions averaged 205,650 boe per day – 26 percent of
Apache's worldwide output – and spent 40 percent of the company's
first-quarter drilling capital.

Growth in onshore liquids output was offset by the deferred production of
4,100 boe per day in Canada and 3,500 boe per day in Australia, lower North
American gas production because of reduced dry gas drilling activity and
natural field declines in other international regions.

The company had previously incorporated production deferrals and declines into
its production guidance, and remains on track to achieve its full-year
guidance of 3 to 5 percent production growth. This production guidance has not
been adjusted for any variances associated with future divestitures.

Operational highlights

  oProduction in the Anadarko Basin – Apache's Central Region – increased 129
    percent from the year-earlier period to 86,215 boe per day, largely a
    result of successful drilling in the Tonkawa, Granite Wash and other
    liquids-rich formations.
  oPermian Basin production rose to 119,435 boe per day, up 20 percent from
    the prior-year period, as a result of increased drilling and recompletion
    activity in oil and liquids-rich plays, including the Wolfcamp Shale, the
    Cline Shale and Yeso.
  oThe Tonto oil field in the United Kingdom sector of the North Sea
    commenced production on April 24, 2013. Tonto-1, the first producing well,
    came on stream at an initial rate of 10,346 barrels of oil per day through
    a tie-back to the Forties Bravo production platform.
  oThree discoveries in three basins in Egypt – Alamein, Faghur and Matruh –
    highlighted the company's diverse potential for new oil and gas
    developments across its concessions.

Oil and gas prices

Liquid hydrocarbons represented 53 percent of first-quarter production but
contributed 82 percent of revenues because of the premium prices received for
crude oil versus natural gas.

Worldwide, Apache received an average price of $101.72 per barrel of oil
during the first quarter, down from $111.22 per barrel during the prior-year
period. Apache's oil realizations reflect higher prices relative to the West
Texas Intermediate benchmark realized on Dated Brent crude produced in the
company's Australia, North Sea and Egypt regions, and on sweet crude from the
Gulf of Mexico regions. Apache received these premium prices on approximately
68 percent of its crude oil production.

Apache received an average of $3.72 per thousand cubic feet (Mcf) of natural
gas, down from $3.82 per Mcf in the prior-year period. The average price
received for Apache's international gas production – $3.99 per Mcf – exceeded
the average price received for company's North American gas production for the
fifth consecutive quarter. Approximately 37 percent of Apache's gas output is
produced outside North America.

*Adjusted earnings and cash from operations before changes in operating assets
and liabilities are non-GAAP measures. Please see reconciliations below. For
supplemental financial and operational data and non-GAAP information, please
go to http://www.apachecorp.com/financialinfo.

About Apache

Apache Corporation is an oil and gas exploration and production company with
operations in the United States, Canada, Egypt, the United Kingdom North Sea,
Australia and Argentina. Apache posts announcements, operational updates,
investor information and copies of all press releases on its website,
www.apachecorp.com.

Conference call

Apache will conduct a conference call to discuss its results and its portfolio
review at 9 a.m. Central time on Thursday, May 9. The conference call will be
webcast from Apache's website, www.apachecorp.com. The webcast replay will be
archived on Apache's website. The conference call will be available for
delayed playback by telephone for one week beginning at approximately noon on
May 9. To access the telephone playback, dial 855-859-2056 or 404-537-3406 for
international calls. The conference access code is 84101004.

Forward-looking statements

This news release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Forward-looking statements can be identified by words
such as "anticipates," "intends," "plans," "seeks," "believes," "estimates,"
"expects" and similar references to future periods. These statements include,
but are not limited to, statements about future plans, expectations, and
objectives for Apache's operations, including statements about our drilling
plans and production expectations, asset sales and monetizations and share
repurchases. While forward-looking statements are based on assumptions and
analyses made by us that we believe to be reasonable under the circumstances,
whether actual results and developments will meet our expectations and
predictions depend on a number of risks and uncertainties which could cause
our actual results, performance, and financial condition to differ materially
from our expectations. See "Risk Factors" in our 2012 Form 10-K filed with the
Securities and Exchange Commission for a discussion of risk factors that
affect our business. Any forward-looking statement made by us in this news
release speaks only as of the date on which it is made. Factors or events that
could cause our actual results to differ may emerge from time to time, and it
is not possible for us to predict all of them. We undertake no obligation to
publicly update any forward-looking statement, whether as a result of new
information, future development, or otherwise, except as may be required by
law.



APACHE CORPORATION
STATEMENT OF CONSOLIDATED OPERATIONS
(In millions, except per share data)
                                           For the Quarter
                                           Ended March 31,
                                           2013      2012
REVENUES AND OTHER:
   Oil revenues                           $ 3,255   $ 3,512
  Gas revenues                           735       811
   NGL revenues                           156       134
  Oil and gas production revenues          4,146     4,457
  Other                                   (70)      79
                                           4,076     4,536
COSTS AND EXPENSES:
  Depreciation, depletion and amortization
   Oil and gas property and equipment
   Recurring                           1,265     1,135
   Additional                          65        521
  Other assets                           105       84
  Asset retirement obligation accretion    65        55
  Lease operating expenses                 771       673
  Gathering and transportation            74        77
  Taxes other than income                  242       257
  General and administrative               116       128
  Merger, acquisitions & transition        -         6
  Financing costs, net                     53        40
                                           2,756     2,976
INCOME BEFORE INCOME TAXES                 1,320     1,560
  Current income tax provision            497       725
  Deferred income tax provision            106       38
NET INCOME                                717       797
  Preferred stock dividends                19        19
INCOME ATTRIBUTABLE TO COMMON STOCK        $  698  $  778
NET INCOME PER COMMON SHARE:
  Basic                                    $  1.78  $  2.02
  Diluted                                 $  1.76  $  2.00
WEIGHTED-AVERAGE NUMBER OF COMMON
 SHARES OUTSTANDING:
  Basic                                    392       385
  Diluted                                  408       399
DIVIDENDS DECLARED PER COMMON SHARE        $  0.20  $  0.17



APACHE CORPORATION
SUMMARY OF CAPITAL COSTS INCURRED
(In millions)
                                           For the Quarter
                                           Ended March 31,
                                           2013           2012
CAPITAL EXPENDITURES (1):
 Exploration & Development Costs
   United States                           $   1,269    $        794
   Canada                                  258            198
    North America                          1,527          992
   Egypt                                   262            250
   Australia                               225            78
   North Sea                               177            196
   Argentina                               33             84
   New Ventures - International            5              21
    International                          702            629
    Worldwide Exploration & Development    $   2,229    $       1,621
    Costs
 Gathering, Transmission and Processing
 Facilities
   United States                           $     18  $        
                                                          12
   Canada                                  30             44
   Egypt                                   19             17
   Australia                               180            172
   Argentina                               2              4
    Total Gathering, Transmission and      $    249   $        249
    Processing
 Capitalized Interest                      $     93  $        
                                                          66
 Capital Expenditures, excluding           $   2,571    $       1,936
 Acquisitions
 Acquisitions                              $    310   $        
                                                          60
 (1) Accrual basis
APACHE CORPORATION
SUMMARY BALANCE SHEET INFORMATION
(In millions)
                                           March 31,      December 31,
                                           2013           2012
 Cash and Cash Equivalents                 $    248   $        160
 Other Current Assets                     4,600          4,802
 Property and Equipment, net               54,289         53,280
 Goodwill                                  1,369          1,289
 Other Assets                              1,286          1,206
 Total Assets                              $  61,792     $     60,737
 Short-Term Debt                           $    994   $        990
 Other Current Liabilities                 4,568          4,546
 Long-Term Debt                            11,485         11,355
 Deferred Credits and Other Noncurrent     12,758         12,515
 Liabilities
 Shareholders' Equity                      31,987         31,331
 Total Liabilities and Shareholders'       $  61,792     $     60,737
 Equity
 Common shares outstanding at end of       392            392
 period



APACHE CORPORATION
PRODUCTION INFORMATION
                                    For the Quarter
                                    Ended March 31,
                                    2013       2012
 OIL VOLUME - Barrels per day
     Central                        20,526     6,483
     Permian                        67,900     56,481
     GOM Deepwater                  7,235      5,801
     GOM Shelf                      43,625     46,585
     GC Onshore                     9,977      10,578
            United States           149,263    125,928
     Canada                         17,176     15,582
            North America           166,439    141,510
     Egypt                          91,315     99,490
     Australia                      20,001     30,398
     North Sea                      68,462     65,946
     Argentina                      9,297      9,632
            International           189,075    205,466
                    Total          355,514    346,976
 NATURAL GAS VOLUME - Mcf per day
     Central                        277,025    165,863
     Permian                        185,713    180,253
     GOM Deepwater                  31,136     46,996
     GOM Shelf                      254,405    332,140
     GC Onshore                     105,412    92,241
            United States           853,691    817,493
     Canada                         519,175    636,227
            North America           1,372,866  1,453,720
     Egypt                          365,612    376,067
     Australia                      214,395    224,337
     North Sea                      55,032     67,066
     Argentina                      188,259    211,193
            International           823,298    878,663
                    Total^         2,196,164  2,332,383
 NGL VOLUME - Barrels per day
     Central                        19,517     3,513
     Permian                        20,583     12,650
     GOM Deepwater                  887        256
     GOM Shelf                      5,999      3,594
     GC Onshore                     2,313      2,304
            United States           49,299     22,317
     Canada                         6,663      6,312
            North America           55,962     28,629
     North Sea                      1,494      1,966
     Argentina                      2,822      2,994
            International           4,316      4,960
                    Total           60,278     33,589
 BOE per day
     Central                        86,215     37,640
     Permian                        119,435    99,173
     GOM Deepwater                  13,311     13,890
     GOM Shelf                      92,024     105,535
     GC Onshore                     29,859     28,255
            United States           340,844    284,493
     Canada                         110,368    127,932
            North America           451,212    412,425
     Egypt                          152,250    162,168
     Australia                      55,734     67,788
     North Sea                      79,128     79,090
     Argentina                      43,495     47,825
            International           330,607    356,871
                    Total^         781,819    769,296



APACHE CORPORATION
PRICE INFORMATION
                                                  For the Quarter
                                                  Ended March 31,
                                                  2013           2012
 AVERAGE OIL PRICE PER BARREL
    Central                                       $ 88.15        $ 98.79
    Permian                                       82.78          98.36
    GOM Deepwater                                 110.47         110.83
    GOM Shelf                                     111.67         114.04
    GC Onshore                                    111.03         113.41
             United States ^(1)                   94.45          102.08
    Canada                                        82.33          92.47
             North America ^(1)                   93.20          101.02
    Egypt                                         110.99         123.55
    Australia^(1)                                 112.35         122.95
    North Sea^(1)                                 110.53         113.19
    Argentina                                     75.36          83.03
             International ^(1)                   109.22         118.24
                       Total^(1)                  101.72         111.22
 AVERAGE NATURAL GAS PRICE PER MCF
    Central                                       $  3.73       $  3.10
    Permian                                       3.77           3.72
    GOM Deepwater                                 3.40           2.98
    GOM Shelf                                     3.54           3.17
    GC Onshore                                    3.55           2.80
             United States ^(1)                   3.75           3.93
    Canada ^(1)                                   3.23           3.41
             North America ^(1)                   3.56           3.70
    Egypt                                         2.95           3.79
    Australia                                     4.94           4.18
    North Sea                                     10.00          7.97
    Argentina                                     3.18           2.98
             International                        3.99           4.02
                       Total ^(1)                 3.72           3.82
 AVERAGE NGL PRICE PER BARREL
    Central                                       $ 26.54        $ 37.48
    Permian                                       25.71          44.78
    GOM Deepwater                                 34.68          38.51
    GOM Shelf                                     28.87          42.93
    GC Onshore                                    33.69          47.16
             United States                        26.96          43.51
    Canada                                        32.15          41.63
             North America                        27.58          43.09
    North Sea                                     71.16          84.11
    Argentina                                     30.28          26.20
             International                        44.43          49.16
                       Total                      28.78          43.99
    ^(1) Prices reflect the impact of financial derivative hedging
    activities.



APACHE CORPORATION
NON-GAAP FINANCIAL MEASURES
(In millions, except per share data)
Reconciliation of income attributable to common stock to
adjusted earnings:
The press release discusses Apache's adjusted earnings. Adjusted earnings
exclude certain items that management believes affect the comparability of
operating results and are meaningful for the following reasons:

Ÿ• Management uses adjusted earnings to evaluate the company's operational
   trends and performance relative to other oil and gas producing companies.
   Management believes this presentation may be useful to investors who follow
Ÿ• the practice of some industry analysts who adjust reported company earnings
   for items that may obscure underlying fundamentals and trends.
   The reconciling items below are the types of items management believes are
Ÿ• frequently excluded by analysts when evaluating the operating trends and
   comparability of the company's results.

                                                          For the Quarter
                                                          Ended March 31,
                                                          2013       2012
Income Attributable to Common Stock (GAAP)                $   698  $   778
Adjustments:
 Oil & gas property write-downs, net of tax           42         390
 Deferred tax adjustments                             39         -
 Commodity derivative mark-to-market, net of tax      31         -
 Unrealized foreign currency fluctuation impact on    (4)        7
deferred tax expense
 Merger, acquisitions & transition, net of tax        -          3
 Adjusted Earnings (Non-GAAP)                        $   806  $ 1,178
Net Income per Common Share - Diluted (GAAP)              $  1.76  $  2.00
Adjustments:
 Oil & gas property write-downs, net of tax           0.10       0.97
 Deferred tax adjustments                             0.10       -
 Commodity derivative mark-to-market, net of tax      0.07       -
 Unrealized foreign currency fluctuation impact on    (0.01)     0.02
deferred tax expense
 Merger, acquisitions & transition, net of tax        -          0.01
Adjusted Earnings Per Share - Diluted (Non-GAAP)          $  2.02  $  3.00

Reconciliation of net cash provided by operating activities to cash
from operations before changes in operating assets and liabilities:
The press release discusses Apache's cash from operations before
changes in operating assets and liabilities. It is presented
because management believes the information is useful for investors
because it is used internally and widely accepted by those following
the oil and gas industry as a financial indicator of a company's
ability to generate cash to internally fund exploration and
development activities, fund dividend programs, and service debt.
It is also used by research analysts to value and compare oil and
gas exploration and production companies, and is frequently included
in published research when providing investment recommendations.
Cash from operations before changes in operating assets and
liabilities, therefore, is an additional measure of liquidity, but
is not a measure of financial performance under GAAP and should not
be considered as an alternative to cash flows from operating,
investing, or financing activities.
The following table reconciles net cash provided by operating
activities to cash from operations before changes in operating
assets and liabilities.

                                            For the Quarter
                                            Ended March 31,
                                            2013     2012
Net cash provided by operating activities   $ 2,621  $ 2,007
Changes in operating assets and liabilities (263)    641
Cash from operations before changes in
         operating assets and liabilities   $ 2,358  $ 2,648



APA-F

SOURCE Apache Corporation

Website: http://www.apachecorp.com
Contact: Media: (713) 296-7276 Bill Mintz; or (713) 296-6100 Patrick Cassidy;
or (713) 296-6662 Bob Dye; or (281) 302-2646 John Roper; or Investor: (281)
302-2286, Brady Parish; or Castlen Kennedy; or Christopher Cortez; or Alicia
Reis, Website: www.apachecorp.com
 
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